INJUNCTION

It is an order or a writ that commands a person to do or not to do a

particular act. It may be a positive (mandatory) or a negative (prohibitory)
command. Injunction in picketing, strike or lockout cases

GR: Prohibition on injunction against the conduct of strikes and lockouts –

Strikes and lockouts that are validly declared enjoy the protection of the law and
cannot be enjoined unless illegal acts are committed or threatened to be
committed in the course thereof.

A strike cannot be enjoined even if it may appear to be illegal because

strike is a weapon that the law grants the employees for their protection and
advancement of their interest (Caltex vs. Lucero, 4 SCRA 1196).

XPNs: In some cases, injunctions issued to enjoin the conduct of the strike
itself and not only the commission of illegal acts in the course thereof, were held
to be valid.

1. Injunction may be issued not only against the commission of illegal acts
in the course of the strike but against the strike itself because the notice of strike
filed by the union has been converted into a preventive mediation case. Having
been so converted, a strike can no longer be staged based on said notice. Upon
such conversion, the legal effect is that there is no more notice of strike to speak
of (San Miguel Corporation vs. NLRC, G.R. No. 119293, June 10, 2003).

2. NLRC committed grave abuse of discretion when it denied the petition

for injunction to restrain the union from declaring a strike based on non-
strikeable grounds (San Miguel Corporation vs. NLRC, G.R. No. 99266, March 2,
1999).

3. If declared against an industry indispensable to national interest.

4. If staged by employees who are not accorded the right to strike. Regular
courts are prohibited from issuing injunction against strikes or lockouts The cases
cited above involve the issuance of restraining order or injunction by the NLRC
pursuant to the exercise of its injunctive power.
 In contrast, regular courts are absolutely prohibited to grant any injunctive
relief in cases of strikes or lockouts. Injunction in picketing cases

GR: Injunction cannot be issued against the conduct of picketing by the

workers. Under our constitutional set up, picketing is considered part of the
freedom of speech duly guaranteed by the Constitution. XPNs (Picketing may be
enjoined by the NLRC):

1. When carried out through illegal means;

2. Involves the use of violence and other illegal acts;

3. Affects the rights of third parties or innocent bystanders and injunction

becomes necessary to protect such rights.

Q: Company C, a toy manufacturer, decided to ban the use of cell phones in

the factory premises. In the pertinent Memorandum, management explained that
too much texting and phone-calling by employees disrupted company operations.
Two employee-members of Union X were terminated from employment due to
violation of the memorandum-policy. The union countered with a prohibitory
injunction case (with prayer for the issuance of a temporary restraining order)
filed with the RTC challenging the validity and constitutionality of the cell phone
ban. The company filed a motion to dismiss, arguing that the case should be
referred to the grievance machinery pursuant to an existing CBA with Union X,
and eventually to Voluntary Arbitration. Is the company correct? Explain. (2010
Bar)

A: NO. The RTC has jurisdiction to hear and decide the prohibitory
injunction case filed by Union X against Company C to enjoin the latter from
implementing the memorandum-policy against the use of cell phones in the
factory. The issue in this case is the validity and constitutionality of the cell phone
ban being implemented by Company C. The issue, therefore, does not involve the
interpretation of the memorandum-policy, but its intrinsic validity (Haliguefla v.
PAL 602 SCRA 297).

REQUISITES FOR LABOR INJUNCTIONS

 Injunction in labor disputes

GR: No temporary or permanent injunction or restraining order in any case

involving or growing out of labor disputes shall be issued by any court (LC, Art.
266).

XPNs:

1. Injunction power of the NLRC (LC, Art. 225)

2. Prohibited activities during a strike or lockout (LC, Art. 279)

3. Assumption or certification power of the SOLE in national interest cases

[LC, Art. 278(g)]

Requisites in issuing an injunction in labor cases

1. There is an actual or threatened commission of any or all prohibited or

unlawful acts in any labor dispute

2. There is a need to enjoin or restrain such acts or to require the

performance of a particular act

3. If not restrained or performed forthwith, may cause grave or irreparable

damage to any party or render ineffectual any decision in favor of such party [LC,
Art. 225(e)]

Provided, that no temporary or permanent injunction in any case involving

or growing out of a labor dispute as defined in this Code shall be issued except
after hearing the testimony of witnesses, with opportunity for cross-examination,
in support of the allegations of a complaint made under oath, and testimony in
opposition thereto, if offered, and only after a finding of fact by the Commission,
to the effect:

1. That prohibited or unlawful acts have been threatened and will be

committed and will be continued unless restrained, but no injunction or
temporary restraining order shall be issued on account of any threat, prohibited
or unlawful act, except against the person or persons, association or organization
making the threat or committing the prohibited or unlawful act or actually
authorizing or ratifying the same after actual knowledge thereof;

2. That substantial and irreparable injury to complainant’s property will

follow;

3. That as to each item of relief to be granted, greater injury will be

inflicted upon complainant by the denial of relief than will be inflicted upon
defendants by the granting of relief;

4. That complainant has no adequate remedy at law; and

5. That the public officers charged with the duty to protect complainant’s
property are unable or unwilling to furnish adequate protection.

NOTE: "Labor dispute" includes any controversy or matters concerning

terms or conditions of employment or the association or representation of
persons in negotiating, fixing, maintaining, changing or arranging the terms and
conditions of employment, regardless of whether the disputants stand in the
proximate relation of Er and Ee (LC, Art. 219)

INNOCENT BYSTANDER RULE

Innocent bystander A third party in a picketing who has no existing

connection or interest with the picketing union (MSF Tire & Rubber v. CA, G.R. No.
128632, August 5, 1999).

NOTE: While peaceful picketing is entitled to protection as an exercise of

free speech, the courts are not without power to confine or localize the sphere of
communication or the demonstration to the parties to the labor dispute,
including those with related interest, and to insulate establishments or persons
with no industrial connection or having interest totally foreign to the context of
the dispute.

Thus, the right may be regulated at the instance of third parties or

"innocent bystanders" if it appears that the inevitable result of it is to create an
impression that a labor dispute with which they have no connection or interest
exists between them and the picketing union or constitute an invasion of their
rights (Ibid.).

Required proof to be established by an innocent bystander before a court

enjoins a labor strike

The innocent by stander must show:

1. Compliance with the grounds specified in Rule 58 of the Rules of Court,

and

2. That it is entirely different from, without any connection whatsoever to,

either party to the dispute and, therefore, its interests are totally foreign to the
context thereof (MSF Tire & Rubber v. CA, G.R. No. 128632, August 5, 1999).

When injunction on picketing is allowed through the regular courts and

not through the NLRC

In situations where the picket affects not only the Er but also the business
operations of other establishments owned by third parties, an injunction may be
secured by the latter from the regular courts to enjoin the picket under the
“Innocent Bystander Rule.”

Under this rule, the third party Ers or “innocent bystanders” who have no
ER-Ee relationship with the picketing strikers, may apply for injunction with the
regular courts (not with the NLRC) to enjoin the conduct of the picket.

Because of the absence of such Er-Ee relationship, the NLRC cannot

entertain such application for injunction from “innocent bystanders.”

Only the Er of the picketers can apply for injunctive relief from the NLRC.

Q: May the RTC take cognizance of the complaint which is incidental to a

labor dispute?

A: NO. The RTC has no jurisdiction to act on labor cases or various incidents
arising therefrom, including the execution of decisions, awards or orders where
the subject matter of the 3rd party claim is only incidental to a labor case.
 A party, by filing its 3rd party claim with the deputy sheriff, submits itself to
the jurisdiction of the NLRC acting through the LA. The broad powers granted to
the LA and to the NLRC by Arts. 224, 225 and 230 of the LC can only be interpreted
as vesting in them jurisdiction over incidents arising from, in connection with or
relating to labor disputes, as the controversy under consideration, to the exclusion
of the regular courts.

The RTC, being a co-equal body of the NLRC, has no jurisdiction to issue any
restraining order or injunction to enjoin the execution of any decision of the latter
(Deltaventures v. Cabato, G.R. No. 118216, March 9, 2000).

Q: Liwayway Publication Inc. is a second sublessee of a part of the

premises of the Permanent Concrete Products, Inc. It has a bodega for its
newsprint in the sublet property which it uses for its printing and publishing
business. The daily supply of newsprint needed to feed its printing plant is taken
from its warehouse.

The employees of the Permanent Concrete Products Inc. declared a strike

against their company. The union members picketed, stopped and prohibited
Liwayway’s trucks from entering the compound to load newsprint from its
bodega. Does the lower court have jurisdiction to issue a writ of preliminary
injunction considering that there was a labor dispute between Permanent
Concrete Products, Inc. and the union?

A: YES. Liwayway Publication Inc. is not in any way related to the striking
union except for the fact that it is the sub-lessee of a bodega in the company’s
compound. The business of Liwayway is exclusively the publication of magazines
which has absolutely no relation or connection whatsoever with the cause of the
strike of the union against their company, much less with the terms, conditions or
demands of the strikers. Liwayway is merely a 3rd person or an innocent by-
stander (Liwayway Pub., Inc. v. Permanent Concrete Workers Union, G.R. No.
L25003, October 23, 1981).
 Q: The employer filed with the RTC a complaint for damages with
preliminary mandatory injunction against the union, the main purpose of which
is to disperse the picketing of the members of the union. The union filed a
motion to dismiss on the ground of lack of jurisdiction. The RTC denied the
motion to dismiss and enjoined the picketing, it said that mere allegations of
Employer-Employee relationship does not automatically deprive the court of its
jurisdiction and even the subsequent filing of charges of ULP, as an
afterthought, does not deprive it of its jurisdiction. Was the issuance by the RTC
of the injunction proper?

A: NO. The concerted action taken by the members of the union in picketing
the premises of the department store, no matter how illegal, cannot be regarded
as acts not arising from a labor dispute over which the RTCs may exercise
jurisdiction (Samahang Manggagawa ng Liberty Commercial v. Pimentel, G.R. No.
L-78621, December 2, 1987)

LABOR DISPUTES

A labor dispute includes any controversy or matter concerning:

1. Terms and conditions of employment, or

2. The association or representation of persons in negotiating, fixing,

maintaining, changing or arranging the terms and conditions of employment

3. Regardless of whether the disputants stand in the proximate relation of

Er and Ee [LC, Art. 219(l)].

Tests on whether a controversy is a labor dispute

1. As to nature – It depends on whether the dispute arises from Er-Ee

relationship, although disputants need not be proximately Er or Ee of another.

2. As to subject matter – The test depends on whether it concerns terms or

conditions of employment or association or representation of persons in
negotiating, fixing, maintaining or changing terms or conditions of employment.

Kinds of labor disputes

 1. Labor standard disputes

a. Compensation e.g. Underpayment of minimum wage; stringent output

quota; illegal pay deductions

b. Benefits e.g. Non-payment of holiday pay, OT pay or other benefits c.

Working Conditions e.g. Unrectified work hazards

2. Labor relations disputes

a. Organizational right disputes/ Unfair Labor Practice (ULP) – e.g.

Coercion, restraint or interference in unionization efforts; reprisal or
discrimination due to union activities; company unionism; ULP, strike or lockout;
union members’ complaint against union officers

b. Representation disputes – e.g. Uncertainty as to which is the majority

union; determination of appropriate CB unit; contests for recognition by different
sets of officers in the same union

c. Bargaining disputes e.g. Refusal to bargain; bargaining in bad faith;

bargaining deadlock; economic strike or lockout

d. Contract administration or personnel policy disputes e.g. Non-

compliance with CBA provision (ULP if gross non-compliance with economic
provisions); disregard of grievance machinery; non observance of unwarranted
use of union security clause; illegal or unreasonable personnel management
policies; violation of nostrike/no-lockout agreement

e. Employment tenure disputes e.g. Non-regularization of Ees;

nonabsorption of labor-only contracting staff; illegal termination; non-issuance of
employment contract

Parties to a labor dispute

1. Primary parties are the Er, Ees and the union.

2. Secondary parties are the voluntary arbitrator, agencies of DOLE, NLRC,

SLE and the Office of the President.
 Inter-union dispute

Any conflict between and among legitimate labor unions involving

representation questions for the purposes of CB or to any other conflict or
dispute between legitimate labor unions. Intra-union dispute Any conflict
between and among union members, grievances arising from any violation of the
rights and conditions of membership, violation of or disagreement over any
provision of the union’s constitution and by-laws, or disputes from chartering or
affiliation of union.

Original Jurisdiction over Intra-Union or InterUnion Disputes

1. DOLE Regional Office – If the dispute involves independent unions, local

chapter, or workers’ association.

2. Bureau of Labor Relations (BLR) – If the dispute involves trade union

centers, federations, national unions, or workers association operating in more
than one region.

Effect of Intra-Union or Inter-Union Disputes

1. On the Rights and Obligations of the Parties – The rights, relationships

and obligations of the parties-litigants against each other prior to the filing of the
action subsists until the dispute is decided with finality.

2. On a Petition for Certification Election – The pendency of an intra-union

or inter-union dispute or other related labor relations dispute is not a prejudicial
question to a petition for certification election.

Therefore, it is not a ground for suspension or dismissal of the petition for

certification election.

Internal union dispute

It includes all disputes or grievances arising from any violation of or

disagreement over any provision of the constitution and by-laws of a union,
including any violation of the rights and conditions of union membership provided
for in this LC [LC, Art. 219, (q)].
 Rights disputes

They are claims for violations of a specific right arising from a contract, e.g.
CBA or company policies. Interest disputes They involve questions on “what
should be included in the CBA.”

Strictly speaking, the parties may choose a voluntary arbitrator to decide on

the terms and conditions of employment, but this is impracticable because it will
be a value judgment of the arbitrators and not of the parties.

Contract–negotiation disputes

These are disputes as to the terms of the CBA.

Contract–interpretation disputes

These are disputes arising under an existing CBA, involving such matters as
the interpretation and application of the contract, or alleged violation of its
provisions.

Instances when a person or entity is considered as participating or

interested in a labor dispute

1. If relief is sought against him or it, and

2. He or it is engaged in the same industry, trade, craft, or occupation in

which such dispute occurs, or

3. Has a direct or indirect interest therein, or

4. Is a member, officer, or agent of any association composed in whole or in

part of Ees or Ers engaged in such industry, trade, craft, or occupation.

Compromise Agreement

In any stage of any of the settlement processes, the labor dispute may be
resolved by the parties through a compromise agreement, provided that the
agreement is freely entered into and is not contrary to law, moral, or public
policy.
 A compromise agreement is also subject to approval of the authority
before whom the case is pending. Even a labor standards case can be settled
through a compromise(Art. 233, Labor Code).